Is SuperCom Ltd. overvalued or undervalued?

As of 14 May 2025, the valuation grade for SuperCom Ltd. moved from expensive to very attractive, indicating a significant shift in its perceived value. The company is currently undervalued, with a P/E ratio of 8, well below the industry average, and a PEG ratio of 0.01, suggesting strong growth potential relative to its price. Additionally, SuperCom's EV to EBITDA stands at 9.77, which is favorable compared to peers like Radware Ltd., which has a P/E of 128.27, and Iteris, Inc., with a P/E of 221.37.
In terms of performance metrics, SuperCom boasts a ROE of 19.40% and a ROCE of 7.20%, indicating efficient use of equity and capital. The company's recent stock performance has outpaced the S&P 500 significantly over the past year, returning 170.96% compared to the S&P 500's 10.26%. This strong performance, combined with its attractive valuation ratios, reinforces the conclusion that SuperCom Ltd. is undervalued in the current market.